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Tony Skeels General Manager, Supply Chain Operations

Message from our General Manager,
Supply Chain Operations

Fuji Xerox Australia is committed to continuous improvement in environmental management at all 20 of our locations across Australia and at the service centres we operate on customer sites. The year under review has witnessed some significant developments in our carbon strategy, our approach to environmental accounting as well as ongoing reductions in our environmental footprint.

In 09/10 we worked to identify environmental accounting software that would assist the business to track, measure, and report our environmental footprint. Our new environmental intelligence system (EIS) will provide a high degree of automation, which will deliver efficiencies in what had been a largely manual process and improve data accuracy and timeliness of reporting. At first it was hoped that the EIS would allow greater levels of visibility into the carbon implications of Supply Chain Operations freight management. However our business requirements are such that a specific solution will be designed and implemented for those purposes.

Our Supply Chain Operations focus on carbon reductions is naturally aligned with our ongoing efforts to reduce costs and improve productivity while meeting customer service expectations. Efficiency strategies such as optimising equipment delivery routing, modal shift from air to sea for international logistics and consolidating domestic deliveries result in cost and carbon savings. Likewise reducing excess packaging has both environmental and business benefits. By introducing reusable slip sheeting with one of our paper suppliers in 09/10 we have been able to avoid approximately 9 tonnes in pallet waste and reduce the number of containers required to freight the same amount of paper. However our equipment deliveries by air remain high; we will seek improvements in the equipment sales forecasting and ordering processes in 10/11.

In our previous report we stated that we would review our commitment to 100 percent GreenPower (the official Australian Government accreditation program for renewable energy). We have decided to reduce GreenPower procurement from 50 percent to 25 percent for all our sites and will redirect the funds that would have been invested to a Carbon Reduction Fund for energy efficiency projects. This decision was taken due to rising energy costs and because utility providers claim our GreenPower procurement as their own carbon abatement. Fuji Xerox Australia is disappointed by inadequate policy and market signals to support the renewable energy sector in Australia. However, the company is anticipating significant cost and carbon savings by pursuing energy efficiency projects.

This year we are pleased that most of our environmental targets have been met — we will continue to work on areas where we have under-performed. We surpassed our waste reduction target by achieving a 19 percent reduction in waste to landfill on 08/09 levels. Our scope 1 and 2 carbon emissions decreased by 1 percent, meeting our reduction target — however when our 50 percent GreenPower procurement is factored into that equation our emissions decreased by 17 percent.

The global financial crisis impacted carbon emissions from employee air travel, down 42 percent on 08/09. We failed to meet our aggressive carbon reduction target of 10 percent in Supply Chain Operations, instead emissions increased by 20 percent, largely due to unforeseen critical equipment deliveries.

Our water use decreased by 25 percent, our paper use decreased by 15 percent, and our proportion of recycled paper use remained unchanged at 47 percent of total internal paper use.

Tony Skeels
General Manager,
Supply Chain Operations

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